What's happening
This bill amends laws to further prohibit zone pricing of gasoline based on retail outlet location and allows wholesalers or dealers to seek injunctions against violations.
Why it matters
Expands the definition of "zone pricing". to cover any price differences based on the geographic location of the retail outlet, regardless of posted terminal price or additional costs, making it easier to challenge pricing schemes that don't reflect actual supply expenses.
Allows wholesalers and dealers themselves to seek court injunctions. (not just the Attorney General) to stop unlawful zone pricing, empowering more industry participants to directly address unfair pricing practices without waiting for state action.
Clarifies what costs can justify price differences. by defining “additional costs” (including replacement, transportation, and taxes), which aims to distinguish legitimate cost-based price variation from artificial geographic price discrimination.
Addresses consumer and regional fairness. by targeting artificial price manipulation that can cause higher fuel prices for certain communities, with the goal of reducing inequities between different parts of the state.
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Who cares
Headline styles
Ban Gas Price Discrimination
Plain English, a few words. Used as the page title.
Sponsors
9 Co-sponsors
History
- Referred to consumer protection
- Delivered to senate
- Passed assembly
- Ordered to third reading cal.197
- Returned to assembly
- Died in senate
- Referred to rules
- Delivered to senate
- Passed assembly
- Advanced to third reading cal.193
- Reported
- Reported referred to codes
Show 1 earlier action
- Referred to economic development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Gasoline Zone Pricing
In Senate Committee · Consumer Protection · Sponsor Kenneth P. LaValle
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 3496 A. 5187
2019-2020 Regular Sessions
SENATE - ASSEMBLY
February 7, 2019
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
IN ASSEMBLY -- Introduced by M. of A. THIELE, COOK, GALEF, JAFFEE, RAIA, SANTABARBARA, ZEBROWSKI, McDONOUGH, ROZIC, L. ROSENTHAL -- Multi-Sponsored by -- M. of A. ABBATE, BLANKENBUSH, CUSICK, DenDEKKER, ENGLE- BRIGHT, PALUMBO, RA -- read once and referred to the Committee on Economic Development
AN ACT to amend the general business law, in relation to zone pricing of gasoline, and to amend chapter 579 of the laws of 2008, amending the general business law relating to zone pricing of gasoline, in relation to zone pricing for retail motor fuel based on geographic location
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 1 of section 399-ee of the general business law is relettered paragraph (a-1) and a new paragraph (a) is added to read as follows:
(a) "Additional costs" means all replacement and transportation costs and taxes incurred.
§ 2. Paragraph (g) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
(g) "Relevant geographic market" means the geographic area [of effective competition] which is supplied by the same terminal facility.
§ 3. Paragraph (m) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
(m) "Zone pricing" means the [arbitrary] establishment of price differences based on the geographical location of the retail outlet within the relevant geographic market, [based on] without regard to the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03170-01-9
S. 3496 2 A. 5187
posted terminal price [or] and any additional costs where the effect is to injure competition.
§ 4. Subdivision 2 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:
2. No wholesaler or dealer shall engage in zone pricing with respect to any motor fuel of like grade or quality, which is supplied to dealer operated retail outlets.
§ 5. Subdivision 3 of section 399-ee of the general business law is amended by adding a new undesignated paragraph to read as follows:
Notwithstanding any right of action to the attorney general as provided in this section, a wholesaler or dealer who has been injured by reason of a violation of this section may bring an action in his or her own name to enjoin such unlawful act, however, no damages of any nature shall be recoverable in such action.
§ 6. Section 2 of chapter 579 of the laws of 2008, amending the general business law relating to zone pricing of gasoline, is amended to read as follows:
§ 2. Legislative findings and intent. The legislature hereby finds and declares that for the past several years motor fuel prices have greatly fluctuated. In some cases, price fluctuations are caused by natural market conditions. In other cases, fluctuations result from artificial manipulation of the market. One such artificial pricing manipulation is zone pricing. Zone pricing is the setting of different wholesale prices for retail motor fuel [that operate in different geographic areas] based on geographic location. Zone pricing increases the price of retail motor fuel for certain consumers, leading to inequities among consumers and regions around the state. Therefore, the legislature hereby declares that while natural market occurrences may lead to price fluctuations, artificial changes in motor fuel prices unfairly harm many consumers around the state.
§ 7. This act shall take effect on the thirtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.